Steve Moore a middle aged man with his wife was driving through N59th Avenue. In front of the Waffle House their Corolla came to a halt at a red light in between N59th Avenue and I-10 FWY Phoenix. Within few seconds a car driven by three young boys crashed into the corolla. The car was traveling at high speeds and the young boys were drunk. The seat belt and the air bag saved the man from fatal injuries but his wife was severely injured as the car was damaged.
An investigation took place and the alleged accuser had to compensate for the loss of the victim. He received payment by the insurance company when they found that Moore was not at fault .
As life is unpredictable, you need to invest your recovered money smartly so that you can reap the benefits. If you invest this money in an annuity then you not only secure you financial future but the investment plan is very flexible. As the couple was middle aged they are required to save for their future in order to avoid cash crunch in post retirement.
What is an Annuity?
An Annuity is an agreement between a company and an insurance company. A stipulated sum of money is paid by the individual recurrently to the insurance company as per the contract. This way you invest the money. With the retirement of the individual the insurance company would pay on a regular basis as long as you live.
Why would you invest into an annuity?
One of the major reasons to invest your money in an annuity is that there are few companies that offer a pension plan for its employees that has a fixed income throughout their retired lives. If you want to achieve long term financial security then annuity would be a right option for the consumers to invest their money.
According to your choice and nature of investment you can restructure annuities as it is comparatively flexible than any other investment plan.
You can choose the type of annuity you would like to invest in as well as the type of return you would expect. Till you withdraw the annuity amount the tax won’t be levied on it. If you come across a fatal accident then the money along with the interest would be paid to your heir. At least you would be contented that n your absence, your children would not face a cash crunch.
Advantages of Investing in Annuities:
If you are investing in annuities then you are financially secured. Insurance is one way your family members can deal with the income requirement after your death. Annuities also look after the life post retirement. It also reduces the complexities of the investments.
It is an uncontested truth that investing in annuities is highly beneficial to all the people. The following points are few advantages of investing in annuities:
1) Tax Relief –
You get a tax relief while investing in annuities as long as you do not withdraw and start receiving the payment.
2) Elasticity –
Investment plans in annuities are flexible as you have a wide range of choice. There are ample options in hand you can invest in those annuities that have long term objectives as well as achieve a secured financial future. Even the payment plan can be of your choice.
3) Support for dependants If you have children and family solely depending on you then investing in dummies would be a good option. Investing in such plan serves innumerable functions. You save for your post retired life as well as the annuity return would also serve as a support for your beneficiaries and dependants.
4) No specific amount required –
There is no compulsion to invest a certain amount of money in an annuity.
So these are few basic reasons why the recovered money should be invested in an annuity.
Author’s Bio: This article is written by Guest Writer Kevin Craig.